India's govt health spending hits 1.43% of GDP in FY23, per capita outlay triples since 2014
Synopsis
India's public health spending has nearly tripled in per capita terms over a decade, and the government's share of total health expenditure has surged from 28.6% to 43.7% — a structural shift that is quietly reducing the financial burden on households. But at 1.43% of GDP, India still has a long road to its own 2.5% target.
Key Takeaways
Government health expenditure rose to 1.43% of GDP in 2022–23 , up from 1.15% in 2013–14 , per the NHA 2022–23 report.
Under the revised GDP base year of 2022–23 , the share is 1.48% .
Per capita government health spending nearly tripled from ₹1,042 to ₹2,786 over the same decade.
GHE as a share of General Government Expenditure rose from 3.78% to 4.89% .
Government's share of total health expenditure jumped from 28.6% to 43.7% , reducing household out-of-pocket burden.
India's National Health Policy 2017 targets public health spending at 2.5% of GDP — still a significant gap from the current level.
Government health expenditure in India rose to 1.43 per cent of GDP in 2022–23, up from 1.15 per cent in 2013–14, according to the National Health Accounts (NHA) 2022–23 report released by the Ministry of Health and Family Welfare on Wednesday. The decade-long climb signals a sustained shift in public financing priorities, even as India's healthcare spending remains well below global benchmarks.
Key Figures from the NHA Report
Under the revised GDP series with base year 2022–23, the government health expenditure share stands at a slightly higher 1.48 per cent, the ministry noted. In absolute per capita terms, public health spending has nearly tripled — from ₹1,042 in 2013–14 to ₹2,786 in 2022–23.
Government Health Expenditure (GHE) as a share of General Government Expenditure (GGE) also climbed from 3.78 per cent to 4.89 per cent over the same period, indicating that health is commanding a larger slice of the overall public spending pie.
Shift Away from Out-of-Pocket Costs
One of the more consequential findings in the report is the reduction in out-of-pocket expenditure (OOPE) as a proportion of total health spending. The share of government health expenditure in total health expenditure has risen sharply — from 28.6 per cent in 2013–14 to 43.7 per cent in 2022–23. This means a significantly larger share of the country's healthcare bills is now being absorbed by the state rather than individual households.
The ministry attributed this shift to improvements in social security expenditure and expanded health insurance coverage, both of which form the backbone of India's push toward universal health coverage.
How the Data Is Compiled
The NHA estimates are prepared by the National Health Accounts Technical Secretariat at the National Health Systems Resource Centre, operating under the Ministry of Health and Family Welfare, using the internationally recognised System of Health Accounts (2011) framework. This methodology ensures comparability with global health financing data.
Context and What It Means
This comes amid longstanding calls from health economists and the World Health Organization for India to raise public health spending to at least 2.5 per cent of GDP — a target set in the National Health Policy 2017. While the trajectory is positive, the current 1.43 per cent figure still leaves a significant gap. Notably, high OOPE has historically been one of the leading drivers of household impoverishment in India, making the downward trend in that metric particularly significant for low-income families.
With health insurance coverage expanding and public infrastructure investment rising, the next NHA cycle will be closely watched to see whether the momentum holds — and whether the 2.5 per cent target moves from aspiration to policy reality.
Point of View
Not transformation — India's own National Health Policy 2017 set a 2.5% target, and the country is nowhere near it. The more meaningful signal is the shift in the share of total health expenditure absorbed by the government: from 28.6% to 43.7% in ten years. That is what actually reduces household impoverishment from medical costs. The question mainstream coverage misses is whether this improvement is driven by Ayushman Bharat coverage expansion or by a genuine increase in public hospital capacity — the two have very different long-term implications for healthcare quality and equity.
NationPress
13 Aug 2026
Frequently Asked Questions
What does India's government health expenditure as a percentage of GDP stand at in FY2023?
India's government health expenditure stood at 1.43% of GDP in 2022–23, rising from 1.15% in 2013–14, according to the National Health Accounts 2022–23 report. Under the revised GDP base year of 2022–23, the figure is marginally higher at 1.48%.
How has per capita government health spending changed over the decade?
Per capita government health expenditure has nearly tripled, rising from ₹1,042 in 2013–14 to ₹2,786 in 2022–23. This reflects both higher nominal allocations and expanded coverage under public health schemes.
Has out-of-pocket health expenditure declined in India?
Yes. The government's share of total health expenditure has increased from 28.6% in 2013–14 to 43.7% in 2022–23, which has contributed to a reduction in out-of-pocket expenditure as a proportion of total health spending. High OOPE has historically been a major driver of household financial distress in India.
What is India's target for public health spending as a share of GDP?
India's National Health Policy 2017 set a target of raising government health expenditure to 2.5% of GDP. At 1.43% in 2022–23, the country still has a considerable gap to bridge.
Who prepares the National Health Accounts report?
The NHA estimates are prepared by the National Health Accounts Technical Secretariat at the National Health Systems Resource Centre, under the Ministry of Health and Family Welfare, using the System of Health Accounts (2011) framework.
